Soup and Crackers

May 2018

CHARLOTTE

Campbell Soup, headquartered in Camden, New Jersey, has completed the much-anticipated acquisition of Charlotte’s Snyder’s-Lance. With dwindling interest in soup products, Campbell’s has recently purchased other brands, like Prego, Swanson, V8, Bolthouse, and Pepperidge Farm. Snyder’s-Lance will be merged with Campbell’s existing snacks business and operate as a new division, Campbell Snacks. The two companies agreed to a $6.1 billion, all-cash sale, or $50 per share. Campbell borrowed $5.3 billion to help pay for the transaction, bringing its total debt near $10 billion. The soup company also borrowed funds late last year for the $700 million purchase of Pacific Foods. In the announcement, Campbell stated its goal to bring its debt ratio down from 4.8:1 to 3:1 by July 2022. Snyder’s-Lance netted $2.2 billion last year, and the combined company is expected to bring in $10 billion in annual revenue. In another move to capture market share, Campbell is working to remove all artificial flavors and colors from its products by the end of the calendar year.